DIAN REVENUE RULING

Criteria for selecting taxpayers who will report information based on IFRS in order to measure the tax impact of the implementation of this accounting method

Resolution No. 0040 of May 6th 2016

By issuing Resolution No. 0040 of May 6th 2016, the Colombian Tax Authority – DIAN, sets the criteria that will be applied for selecting a series of taxpayers who will need to report certain tax information based on IFRS, in order to measure the tax impact of its implementation, and take action in the event that new regulation becomes necessary.

The resolution clarifies that the information obtained from the selected taxpayers is limited to the measurement of the impact of the implementation of IFRS, and that it will not be used in for the purposes of audit procedures regarding the determination of taxes or the imposition of tax penalties. Additionally, it is determined that the deadlines for submitting the information will be from the 7th of June, to the 10th of June 2016. The failure to report such information will imply the imposition of the penalties established on Section 651 of the Colombian Tax Code.

Some of the criteria that will be considered for the selection of taxpayers includes having filed a tax return on 2014, been an income taxpayer for the tax year 2015, being a taxpayer obliged to held accounting records, and belonging to “Group 1” of IFRS implementation, among others.